Unpacking our performance

Performance information is essential for effective management, including planning, budgeting, implementation, reporting, monitoring and evaluation. The table below outlines the performance indicators and targets that the NLC identified to achieve in the 2019/20 financial year. These performance indicators are aligned across the NLC’s annual plans, budgets and in-year reporting.

The NLC achieved 100% performance against its predetermined objectives and targets; therefore no corrective actions were identified.

Strategic
Objective

Performance
Indicator

Actual achievement
2016/2017

Actual achievement
2017/2018

Actual achievement
2018/2019

Planned target
2019/2020

Actual achievement
2019/2020

Deviation from planned target to actual achievement for
2019/2020

Comment on
Deviations

To Enhance Administration Ensure Compliance with Applicable Legislation and Policy Prescripts

1.1

Develop and implement the marketing strategy to position the NLC as a regulator

50% of the PR Campaign implemented

100% of the PR Campaign implemented

Collaborative partnerships with 4 key national departments

Development and implementation of the marketing strategy to position the NLC as a regulator for Board approval

Achieved

The positioning strategy and the formative evaluation report were tabled to the Board and approved

1.2

Number of stakeholder engagements across the provinces

6 Stakeholder engagements

Eight stakeholder engagements

10 stakeholder engagements

12 stakeholder engagements across the provinces

Achieved

137 stakeholder engagements were conducted across the provinces

Q1: 27

Q2: 76

Q3: 20

Q4: 14

The overachievement of the target is attributed to the NLC’s dual mandate and the focus on regulatory information as well as the demand for grant funding information.

1.3

Develop and integrate the regulatory functions on the ERP

Phase II of the ERP developed

Integration of E-System with identified SOE’s and national departments

Development of the Online Portal

Development and integration of the regulatory functions on the ERP

Achieved

Regulatory functions were automated on the ERP

1.4

Number of organisation-wide compliance and ethics interventions

1 organisational intervention per quarter

3 organisational interventions per quarter

5 organisational interventions per quarter

Achieved

A total of 40 interventions were rolled out as follows:

Q1: 14

Q2: 10

Q3: 8

Q4: 8

The overachievement is as a result of increased awareness around ethics and organisational compliance

To Ensure Financial Sustainability, Control and Discipline in line with Applicable Legislation and Policy Prescripts

2.1

Percentage disbursement of grants as per GNR644, 6(c)(iv)

67% of grants disbursed

66% of grants disbursed

83% of grants disbursed

At least 90% of grants be paid in line with the regulated 60-day timeframe

Achieved

91% of grants disbursed

Additional resources assigned

2.2

Percentage Return on Investments (ROI) of NLDTF funds

8.15% ROI

8.40% ROI

8.42% ROI

An annual minimum of 8% ROI on NLDTF funds

Achieved

8.42% ROI

Implementation of the investment strategy

2.3

Average Percentage of localised procurement

99% of procurement was localised

Average percentage of 95% localised procurement to the provinces

Achieved

99% of procurement localised

Empowerment of local suppliers

To Implement Relevant Initiatives Geared towards Ensuring Compliance with the Act

3.1

Percentage of investigations on reported and identified lottery schemes

78% of identified and reported illegal lotteries investigated

96% of identified and reported illegal lotteries investigated

100% of identified and reported illegal lotteries investigated

Conduct investigations on 100% of all identified and reported lottery schemes

Achieved

100% of identified illegal lotteries were investigated

3.2

Implement and monitor 3rd National Lottery licence monitoring matrix/scorecard

Compliance by the operator with licence conditions implemented

Implement and monitor compliance with the licence conditions

Achieved

Licence monitoring matrix was implemented to monitor the operator’s compliance with the Act and licence

3.3

Number of participant protection programmes per province

–

Implement one participant protection programme per province

Achieved

Participant protection programmes were implemented in all provinces

To Ensure Fair and Equitable Grant Allocations

4.1

Percentage of applications adjudicated within 150 days

83% of applications were adjudicated within the legislated 150 days

81% of applications were adjudicated within the legislated 150 days

98% of applications were adjudicated within the legislated 150 days

100% of applications adjudicated within 150 days

Not achieved

99% of applications were adjudicated within 150 days

The non-attainment of target by 1% is a result of voluminous applications received, which outstripped initial forecast.

4.2

Percentage allocation of grant funding to provinces

EC – 10%

FS – 7%

GP – 32%

KZN – 9%

LP – 9%

MP – 10%

NW – 6%

NC – 6%

WC – 11%

EC – 11 %

FS – 8%

GP – 30%

KZN – 12%

LP – 10%

MP – 8%

NC – 6%

NW – 8%

WC – 8%

EC – 10.6%

FS – 8.0%

GP – 22.0%

KZN – 10.1%

LP – 16.8%

MP – 8.7%

NW – 8.9%

NC – 7.1%

WC – 7.8%

A minimum of 5% grant funding allocated to each province

Achieved

EC – 9.0%

FS – 8.4%

GP – 26.3%

KZN – 10.4%

LP – 12.4%

MP – 8.9%

NW – 9.4%

NC – 7.5%

WC – 9.9%

4.3

Number of Monitoring and evaluation site visits conducted

1 814 monitoring and evaluation site visits

2 333 monitoring and evaluation site visits

2 847 monitoring and evaluation site visits

Conduct 2 500 monitoring and evaluation site visits

Achieved

3011 site visits conducted

The over achievement is as a result of an increased number of site visits, both pre- and post-funding.

4.4

Provincial infrastructure impact evaluation study

The Impact evaluation study was conducted in 5 provinces

The Impact evaluation study was conducted in 4 provinces

Conduct an impact evaluation study on infrastructure projects in all provinces for Board approval

Achieved

The report was tabled and approved by the Board

4.5

Review of the grant funding model

100% of the grant funding model implemented

Assess the efficacy of the Grant Funding Model for Board Approval

Achieved

The report was tabled and approved by the Board

Strategy to overcome areas of under performance

Not applicable

Changes to planned targets

There were no changes to the planned targets.

Linking performance with budgets

Strategic objective one: To enhance administration and ensure compliance with applicable legislation and policy prescripts

	2018/2019			2019/2020
Programme/activity/objective	Budget R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Budget R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000
Position NLC as a Regulator	–	–	–	59 121	54 360	4 761
Education and Awareness	4 585	4 573	12	6 085	5 888	197
ERP(Integrated Enterprise Wide Architecture Platform)	21 506	21 506	–	7 273	7 273	–
Governance, Organisational Compliance and Ethics	2 208	1 738	470	2 090	2 084	6
NLDTF Disbursements	1 557 165	1 557 165	–	1 284 412	1 283 412	–
Localised Procurement	16 235	16 169	66	13 692	12 274	1 418
Illegal Lotteries	2 035	1 500	535	1 447	692	755
3rd Lottery Licence	–	–	–	219	197	21
Participants Protection Section 2(A)(b)	–	–	–	146	132	14
Lotteries Act-5% per province (GNR182)	1 311 277	1 311 277	–	1 344 712	1 346 939	2 227
Grant Funding Model	–	–	–	1 000	1 156	(156)

Position NLC as a regulator and education and awareness: The NLC achieved these targets through the initiatives towards NLC turning 20 years Celebration and the additional NLC Scam Alert campaign and Media briefing conferences which increased the number of activities, multiplied number of audiences who accessed regulator mandate of the NLC compared to previous years.

The expenditure allowed the NLC to reach the targeted audience by having a diversified marketing and communications plan that positioned NLC as a regulator internally and externally by pro-actively sharing information, continuous media monitoring via the 20 years of NLC Campaign, Billboards, TV, radio, Print & Social media etc. Having the budget also allowed the NLC the opportunity to coordinate education and awareness sessions throughout the 9 provinces and also host roadshows throughout the provinces. Some activities were rescheduled due to the lockdown hence there was an under expenditure.

ERP (Integrated Enterprise Wide Architecture Platform): The expenditure has assisted with the integration of the regulatory function within the ERP

NLDTF Disbursements: This expenditure has assisted the NLC to pay beneficiaries within the regulated timeframes.

Illegal Lotteries: The expenditure assisted in meeting the regulatory compliance & enforcement activities such as attending court proceedings for illegal lottery cases, inspections of society lotteries, conducting Compliance Seminars and Player protection seminars

3rd Lottery Licence: The expenditure was used to travel for inspections and reviews on the National Lottery Operations throughout all the 9 Provinces

Participants Protection Section 2(A)(b): The expenditure was used for travel to conduct awareness training to National Lottery participants throughout all the 9 Provinces

Lotteries Act-5% per province (GNR182): This expenditure has assisted the NLC to ensure the requirements of the Act are met.

Grant Funding Model: The NLC commissioned two studies instead of one originally planned study. A stakeholder survey was conducted, as well as a comparative study. Despite this, we were able to complete both studies with a slight budget deficit.

Revenue collection

	2018/2019			2019/2020
Sources of revenue	Estimate R’000	Actual Amount Collected R’000	Over/(Under) Collection R’000	Estimate R’000	Actual Amount Collected R’000	Over/(Under) Collection R’000
Share of ticket sales	1 487 581	1 626 291	138 710	1 610 000	1 632 334	22 334
Interest Received	126 127	141 579	15 452	125 626	147 785	22 159
Societies & Other Lotteries	60	94	34	84	70	(14)
Revenue from Participants Trust	170 072	200 278	30 206	170 072	192 798	22 726
Withdrawals	30 000	48 875	18 875	20 000	20 143	143
Sundry Income	1 000	11 870	10 870	1 000	5 289	4 289
License Signing Fees	2 500	2 500	–	2 500	2 500	–
Total	1 817 340	2 031 487	214 147	1 929 282	2 000 919	71 637

There was an over-performance in share of ticket sales as a result of over-performance by Powerball, Powerball Plus and Lotto Plus during the financial year under review. The overall performance of Powerball was better than Forecast as a result of major jackpots the game enjoyed. Investment income over-performed by 17% as a result of interest income from current and call accounts which earned more interest due to higher cash balances in the accounts.

Capital investment

	2018/2019			2019/2020
Infrastructure projects	Budget R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Budget R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000
Office Accommodation	43 500	30 198	13 302	25 715	25 002	713

NLC completed the building of offices in Eastern Cape, Mpumalanga and Northern Cape during the year under review. Construction of the Provincial Office in KwaZulu-Natal was at 70% completion at year end and the process to commence with the building project had commenced in Western Cape. The KZN office was also expected to be completed during the year under review but due to delays in approval of the roof structure by the Heritage Council construction was delayed.

The NLC has had additions amounting to R28.9 million for Property Plant and Equipment (PPE) and total of R2.5 million for Intangible assets. Total PPE carrying amount at year was R83.9 million and intangible assets carrying amount was R117.1miilion.

The NLC has internal controls in place to ensure that the assets register is accurate and complete.

Controls include quarterly assets verifications, reconciliation between the asset register and the general ledger, assets movement forms and unique identification for all the assets. The NLC considers its assets to be in good condition.